1 Corporate Residency and Classification

Canadian Tax Fundamentals · 5:02

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Lyrics

[Verse 1]
Where does a corporation call its home?
It's not the place where papers are filed alone
Look for the board room where decisions are made
Central management and control displayed
The minds that guide the corporate fate
Determine residency, don't be late

[Chorus]
CCPC, public corp, or private other
Central control determines the mother
Two-fifty-six connects the family tree
Associated corps in harmony
Management minds and voting shares
Classification shows who really cares

[Verse 2]
Canadian-controlled private corporation
CCPC gets special taxation
Not public, not controlled by foreign hands
Canadian residents must command
Small business rates and refundable tax
Special benefits for staying on track

[Chorus]
CCPC, public corp, or private other
Central control determines the mother
Two-fifty-six connects the family tree
Associated corps in harmony
Management minds and voting shares
Classification shows who really cares

[Verse 3]
Public corporations trade their shares
On designated exchanges everywhere
Private corps keep ownership tight
Not available to public sight
Three categories clear and true
Classification guides what you can do

[Bridge]
Associated means they're family bound
Common control is what we've found
Section two-fifty-six shows the way
Parent, subsidiary, side by side they play
Connected under one-eight-six
Dividend rules and tax policy mix

[Chorus]
CCPC, public corp, or private other
Central management finds the mother
Two-fifty-six connects the family tree
Associated corps in harmony
Management minds and voting shares
Classification shows who really cares

[Outro]
From boardroom chairs to voting control
Residency plays the leading role
Three types of corps, connections clear
Canadian tax law crystal here

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